Pension Drawdown Calculator

Pension drawdown offers a far more flexible way of drawing an income in retirement than an annuity. Where an annuity provides a guaranteed income, if you choose income drawdown you’ll have a finite pot of money to survive from.

You can use our Drawdown Calculator to get a good idea of when your pension is likely to run out, the only detail you’ll need is an estimate of how much your pension is currently worth. Depending on your preference the calculator can either show you:

how much you could withdraw each month from your pension if you want it to last to a certain age

how long your pension will last depending on how much you want to withdraw each month.

Pension Income Drawdown Calculator

When will your income drawdown pension run out? Enter the anticipated size of your pension pot at retirement and follow these easy steps to calculate how long your pension will last. You'll receive our FREE Income Drawdown Downloadable Guide.

1

Total expected pension assets at retirement
The total value of the pension funds that you will have available to draw from at retirement.

£

Warning: As your pension fund
value exceeds the Lifetime Allowance of £1 million you may be liable for a lifetime allowance tax charge. Please
contact one of our financial advisers to discuss how you could potentially mitigate this liability.

2

Cash lump sum on retirement
Enter the size of the cash lump sum you are planning on taking at retirement, most schemes allow you to take up to 25% of your pension as a tax free lump sum.

%

OR

£

You've chosen to take more than 25% of your pension pot upfront as a cash lump sum. Only the first 25% of your pension pot can be withdrawn in this way tax-free. Anything above the initial 25% will be subject to income tax at your highest marginal rate.

3

Expected Retirement Age
Enter the age you at which you expect to retire and start drawing from your pension funds.

4

Date of Birth

5

Gender

6

Your Income Drawdown Calculation To calculate how long your pension will last, either enter:

Your desired monthly pre-tax income

Years you want your pension to last

7

In retirement, I will require a monthly pre-tax income of:

£

7

I require funds to last me up to the age of

Your information is treated with the upmost respect and under no circumstance we will email you or ever pass your details
onto third parties unnecessarily. Any information you provide will be treated as strictly private and confidential under the
General Data Protection Regulation (GDPR) 2018.

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Get your FREE 30 minute Pension Health Check. Find out whether you're on track for your ideal retirement and get some guidance on action you can take today to make for an even better tomorrow.

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provide you with any results.

Free e-guide included

Making Sense of Pension Income Drawdown

An expert guide on the added flexibility of taking your pension via income drawdown. Is it the right option for your retirement?

20 PAGE EXPERT GUIDE DELIVERED STRAIGHT INTO YOUR INBOX

Your Income Drawdown Results

Using our expertise we've modelled the monthly income you might be able to draw down from your pension pot given how long you feel your pension will need to last. Based on our understanding of income drawdown, the size of your pension pot and your current age and life expectancy, we've put together three estimations of the monthly income you might be able to take depending on the rate at which your fund grows.

You've saved hard into your pension pot your whole life, so it's essential you make the right
choices at retirement and don't deplete your fund too soon. If you're considering income
drawdown, it's very important you speak to an expert pension adviser. Please do not hesitate to
call us on 02084327334.

We’ve used our financial expertise to calculate how long your pension could last given the monthly income you’ve indicated you’d like to take. Based on our understanding of income drawdown, the size of your pension pot and your current age, we’ve offered three projections of the age at which your income drawdown pot could run out depending on the rate of growth your fund achieves.

You’ve saved hard into your pension pot your whole life, so it’s essential you make the right
choices at retirement and don’t deplete your fund too soon. If you’re considering income
drawdown, it’s very important you speak to an expert pension adviser. Please do not hesitate to
call us on 02084327334.

Pension Drawdown Overview

Monthly income to age (-10 years)

Monthly income to age (chosen age)

Monthly income to age (+10 yrs)

Funds Exhausted

Conservative Growth Rate

2%

Expected Growth Rate

4%

Accelerated Growth Rate

6%

*The inflation proofed income you will require when you reach your retirement

(1) Our drawdown calculator is limited to 115 years old and at this age you will still have funds available.
It is important to bear in mind that if your pension fund grows to exceed the Lifetime Allowance of
£1 million you may be liable for a lifetime allowance tax charge. Call us
on 02084327334 to speak with one of our financial advisers to discuss how you could mitigate this liability.

Introduction to Financial Planning [VIDEO]

These calculators help but sometimes it doesn't beat talking to a human. If you
need any support please do not hesitate to pop us a call
on 02084327334.

Neil AdamsHead of Pensions Advice at Drewberry

IMPORTANT NOTES

This calculator is for illustrative purposes only. It is designed to provide an estimate of how long your pension could last if you enter into income drawdown but is not a guarantee. Nor should it be construed as financial advice.

The growth rates indicated here are only rough projections of how your fund could grow. As with any investment, the value of your pension pot could rise as well as fall in line with market performance.

Income drawdown may not be the right option for everyone at retirement. It will depend on your
individual circumstances and other wealth you may have. You should consult a regulated financial
adviser for individual retirement planning services or contact us for pensions advice
on 02084327334 if you're thinking about using income drawdown.

Will My Drawdown Pension Pot Run Out?

There is a risk that your pension might not last long enough if you choose income drawdown. That’s because the pot is finite, and every time you draw from it you reduce its total capital.

However, the main alternative to income drawdown is currently buying an annuity. Although this will offer you a guaranteed income for the rest of your life, annuity rates are currently at historic lows.

Income drawdown offers more control and flexibility than an annuity, as well as making it easier to leave a legacy to your loved ones after you’re gone.

You also don’t need to make an absolute choice between drawdown and an annuity. While an annuity is irreversible, so you can’t buy an annuity then cash it in to enter pension drawdown, you’re perfectly entitled to opt for drawdown at first and then use any remaining funds at a later point to purchase an annuity if that’s what you prefer.

You’ll always have to keep in mind that your pension could run out with drawdown. Using our Income Drawdown Calculator is a good starting point on the road to seeking pensions advice and working with an adviser to create a tailored drawdown programme for you.

Peter BanksWealth & Investments Expert at Drewberry

Get Expert Pension Drawdown Advice?

Drewberry’s Income Drawdown Pension Calculator is designed to be used alongside our Income Drawdown Advicepages as a guide to help you understand more about this type of pension. We’ll also help you with your drawdown investments, deciding where to put your money to achieve the best chance of growth.

However, the calculator can’t offer financial advice – that’s what Drewberry’s team of pension experts is for. To get through to one of our expert advisers, give us a call on 02084327333 to discuss your pension drawdown needs.

We’re here to offer you advice on income drawdown and help you put together a customised drawdown programme to reduce the risk that your pension fund will run out sooner than you need.

Drewberry Ltd
(Financial Conduct Authority No. 505473)
is an Appointed Representative of Intrinsic Wealth Limited and Intrinsic Mortgage
Planning Limited, which are authorised and regulated by the Financial Conduct Authority.

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The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested. Tax treatment varies according to individual circumstances and is subject to change.